Madison Square Garden Entertainment Corp. (NYSE:MSGE) has sold Tao Group Hospitality to Mohari Hospitality Ltd, the investment firm owned by PokerStars co-founder Mark Scheinberg.
Tao Group operates bars, nightclubs, restaurants and event spaces across the globe. Its Las Vegas venues alone include Asian and Italian restaurants, namesake day clubs, and the nightclubs Hakkasan, Marquee Nightclub, OMNIA Nightclub, and the Wet Republic Ultra Pool. The bulk of those venues are located at Strip resorts.
“Tao Group has grown from an innovator in nightlife to a leader in premium lifestyle and hospitality,” said J. Allen Smith, managing partner of Mohari, in a statement. “Its global footprint of more than 80 branded locations in over 20 markets and best-in-class management infrastructure speaks to the Group’s tremendous potential.”
Mohari Who?
In 2014, Scheinberg’s family sold PokerStars to Amaya Gaming Group Inc. for $4.9B, after which, Scheinberg started Mohari. The investment firm’s portfolio includes 1 Hotel in Toronto, Centro Canalejas in Madrid, the Ritz Carlton Yacht Collection, and other Four Seasons and Waldorf properties.
The deal — expected to close in May — values the Tao Group at around $550M. Mohari will purchase MSG’s majority stake and maintain the entertainment group as consultants. Tao’s management — including co-CEOs Noah Tepperberg and Jason Strauss — will retain an unspecified ownership stake.
“Over the last 20 years, we have been laser focused on building premium guest experiences and a company with a global influence in all areas of hospitality, entertainment and pop culture,” Tepperberg said in a statement. “Mohari’s shared vision, coupled with the strength of its portfolio and leadership, make it an ideal partner as we look at the next chapter for Tao Group.”
In January, MSGE hired Goldman Sachs to explore the sale of its controlling interest in Tao Group. According to a January 2023 New York Post story, the money was needed to offset the ballooning construction costs of the MSG Sphere in Las Vegas. The price tag for the entertainment venue -– slated to open in October behind the Venetian, with U2 as its first residency — has nearly doubled to $2.175 billion.
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